Business

Miller Park sales-tax collections way down

In yet another sign that consumers are spending less during difficult economic times, the Miller Park stadium district is experiencing a dramatic drop in sales-tax collections.

Stadium district officials say that, year-to-date, the district is about 7% behind last year's sales-tax collection amount. And with seven months left to report in 2009, the district has collected more than $1 million less than had been projected.

The district's worst year for sales-tax collections came in 2003, when collections fell 7.57%. At the time, district officials said the decrease may have been tied to a decision by the state Department of Revenue to use new software to track the sales-tax collections. The state said the new software was not at fault.

Nonetheless, it is only the second time since the tax was first collected that the district saw negative growth.

The July distribution of sales tax money from the state Department of Revenue to the district reflects, for the most part, sales tax collections from May. The July distribution totaled just over $2 million, or about 13.8% less than last year's July distribution.

The 0.1% sales tax, which is collected in Ozaukee, Washington, Racine, Milwaukee and Waukesha counties, is used to pay for the construction and financing of Miller Park. The tax was first collected in 1996.

So far this year, the district has collected nearly $14 million, just over $1 million less than had been expected.

The decrease in sales-tax collections is even more dramatic considering that, from the years 1997-2008, the average annual increase has been 4.1%.

That kind of increase had led district officials to believe that they could end the tax in 2014. However, district consultants have been warning for some time that, because of the impact of the recession and consumer spending cutbacks, the tax will more than likely have to be collected well beyond 2014.

Mike Duckett, the district's executive director, said Wednesday that it will simply take more time to pay off stadium debt.

"As soon as we have enough money to cover future debt obligations, we will end the tax," he said.

Duckett estimated the district has approximately $284 million in stadium debt. The district has not borrowed any money since 1999.

The new data shows the recession has affected all of the counties in southeastern Wisconsin. Milwaukee County is down 6.7% compared with the same time period last year. Ozaukee County, normally considered a wealthy county, is down 2.2% compared with last year.

Also, Washington County is down 5.5%, and Racine and Waukesha counties are down 8.2%.